Oil rises on USA crude stock draw, supply concerns

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Oil rises on USA crude stock draw, supply concerns

Futures prices for West Texas Intermediate crude, the USA benchmark, dipped slightly following Trump's tweet before recovering and then retreating once again to trade roughly flat.

Gasoline consumption usually picks up in the summer and wanes in autumn, but demand remained strong in the latest week, estimated at 9.5 million barrels per day.

Oil prices dipped on Friday after falling in the previous session as US President Donald Trump urged OPEC to lower crude prices ahead of its meeting in Algeria this weekend.

Crude oil prices have been rising over the past year as a result of the Organization of the Petroleum Exporting Countries' strategy to tighten supply.

"We're stuck in a range here", said Tariq Zahir, managing member at Tyche Capital Advisors in NY, with prices supported by the USA sanctions on Iranian supplies and pressured by the potential that Chinese demand could wane. A Bloomberg survey of analysts forecasts a 2.5-million-barrel decline in nationwide inventories.

"The current market betting line suggests price levels rather than global supply levels will be the key determinant on turning on the oil taps", Innes said.

Speaking of oil, recently oil prices were increased by 1.6% in the USA, as the US stocks fell by 5.3 Million barrels.

A commission of the cartel hopes to impose another supply agreement, influenced by US president, Donald Trump. Exports averaged 2.37 million barrels a day last week and have a cumulative daily average for the year of 1.81 million barrels a day, a 137% increase over the year-ago export total. "But U.S. pressure will come into play and it's more likely that OPEC producers and allies will decide on a production boost later this week".

The OPEC slam sent oil prices down slightly, however prices have enjoyed a robust rally this year as production wanes.

Tanker tracking and industry data show Iranian exports of crude have already begun to decline well before the imposition of new USA sanctions on Tehran.

The weekly oil inventory cycle is complete and WTI crude is on the bull. Prices for November WTI futures are up more than $0.75 on the EIA reporting a draw on supply.

Refinery crude runs fell by 442,000 barrels per day, EIA data showed.

'It's also political because the Saudis don't want to pump too much oil then the Iranians complain to OPEC that it (Saudi Arabia) is taking (Iran's) market share.

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